1. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 1 Network Operating Committee (NOC) June 12 th, 2014

2. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 2 Meeting Objectives  Understand the provisions, purpose, and use of the current Network Operating Agreement (NOA).  Develop the framework (purpose and responsibilities) for a functioning Network Operating Committee (NOC).  Provide an update on technical and operational topics. – Planning Coordinator Update – Planned Outage Coordination Procedures  Determine next steps.

3. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 3 Network Operating Committee (NOC) – An Introduction  Section 35.3 of BPA’s Tariff provides – – “A Network Operating Committee (Committee) shall be established to coordinate operating criteria for the Parties’ respective responsibilities under the Network Operating Agreement. Each Network Customer shall be entitled to have at least one representative on the Committee. The Committee shall meet from time to time as need requires, but no less than once each calendar year.”  The NOC is a forum for discussion of technical and operational matters related to the Network Operating Agreement (NOA) and the provision of NT Service.  BPA will be working with the customer representatives to develop a NOC Charter.

4. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N Network Operating Agreement (NOA) – Review Attachment G of BPA’s Tariff

5. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 5 Network Operating Agreement (NOA) – An Introduction  Pursuant to section 29.1 of BPA’s Tariff, one condition to receiving NT Service is that – – “the Eligible Customer executes a Network operating Agreement with the Transmission Provider pursuant to Attachment G.”  The current Network Operating Agreement (NOA) is part of BPA’s Tariff as Attachment G. – As part of each executed NT Service Agreement, the NT Customer agrees to comply with BPA’s Tariff which incorporates Attachment G (the NOA).  The NOA provides terms and conditions under which an NT Customer is to interconnect and operate its facilities interconnected with BPA’s system, and any other technical and operational matters associated with the provision of NT Service. – Sections 35.1 and 35.2 of BPA’s Tariff.

6. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 6 Network Operating Agreement (NOA) - Overview  In general, among other provisions, the NOA provides for the NT Customer and BPA to: – Operate and maintain equipment necessary for integrating the NT Customer within the Transmission Provider’s transmission system; – Transfer data, including operational characteristics of designated Network Resources (DNR) and other real time data; – Use software programs required for data links and constraint dispatching; – Exchange data on forecasted loads and resources necessary for long-term planning; – Address other technical and operational considerations required for the provision and receipt of NT Service under the Tariff.

7. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 7 Section 1 – Purpose of Network Operating Agreement  Section overview: – Requires Parties (BPA and NT Customer) to: recognize that interconnected transmission systems have impacts on each other; Operate and maintain necessary equipment for interconnecting the NT Customer with BPA’s transmission system; Transfer data between control centers to maintain system reliability; Exchange data on forecasted loads and resources necessary for planning and operation. Address other technical and operational aspects related to provision of NT Service.  Section 1 impacts on customers: – Provides general obligations on BPA and the NT Customer to exchange information and work collaboratively in operating their interconnected transmission systems.

8. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 8 Sections 2 to 5 – Term, Administration of Provisions, Notice, and Definitions  Sections overview: – Term: NOA effective through term of Service Agreement. – Administration – language of Tariff governs. – Notices – any NOA notices/request to be made to the party identified in NT Service agreement  Sections 2-5 impacts on customers: – Establishes NOA effectiveness through term of NT Service Agreement and general administrative provisions.

9. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 9 Section 6 – Interconnected Facility Requirements  Section overview: – Requires clearance of equipment during maintenance and testing, safety clearance. – Grants permission for parties to enter each other’s property for operations and maintenance. – Requires identification of facilities installed on another party’s property and each party’s responsibility for own facilities.  Section 6 impacts on customers: – BPA and NT Customer have rights to maintain and safely operate owned facilities on each other’s property.

10. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 10 Related Update - Maintenance Obligations and Ownership Agreements for Interconnected Facilities  In addition to section 6 of the NOA, BPA is negotiating new purpose-specific maintenance obligations and ownership agreements. – Purpose is to consolidate maintenance and ownership obligations currently housed in over 400 contracts and to clarify NERC Reliability Standard obligations. – Negotiations anticipated from 2015 through 2018 involving approximately 35 impacted customers.  No change to NOA will be required since because provisions and requirements are consistent.

11. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 11 Section 7 – Resource and Interconnection Principles and Requirements  Section overview: – Parties may establish joint planning and coordination of Remedial Action Schemes (RAS) implementation. The NERC description is “special protection systems.” – Establishes customer responsibility for costs associated with modifications to Transmission Provider systems, communications, software associated with, for example, customer’s decision to change Balancing Authority Areas (BAA). – Establishes cooperation and coordination with BPA and third party systems for integration and interconnection of generation. Separate operation and ownership agreement may be needed.  Section 7 impacts on customers: – Provides for coordination between BPA and the customer when interconnecting/integrating generation resources. – Establishes interconnection principles and requirements to ensure safety and reliability.

12. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 12 Section 8 – Customer Information Requirement  Section overview: – Requires NT Customer to share certain information with BPA. – Information includes: load forecast, generation forecast, schedules and any other information require for ATC or reliability purposes.  Section 8 impacts on customers: – NT Customers are required to provide the identified information to properly plan and ensure reliability of the transmission system to meet NT Customer Network Loads.

13. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 13 Section 9 – Power Quality  Section overview: – Power Quality is referenced in the document “Technical Requirements for Interconnection to the BPA Transmission Grid,” section 5.4.8. – In general, the customer is responsible for not degrading the power quality of the grid (impacting BPA and other utility customers). The customer is responsible for installation of the necessary equipment and operational measures to mitigate any power quality issues.  Section 9 impacts on customers: – NT Customers whose system is interconnected to BPA’s transmission system may be required to take steps to ensure acceptable power quality on the BPA grid.

14. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 14 Section 10 – Service Interruptions  Section overview: – Provides ability to temporarily curtail, reduce, or shift deliveries of electric power if either party determines that such action is necessary during a system emergency. Same action may be taken for system maintenance work. – Parties are to use temporary facilities or equipment to minimize the effect of these interruptions. – A customer is required to provide a report within 4 days of the events above in order to account for the interruption in billing charges. Report  Section 10 impacts on customers: – Customer may request BPA, or may be requested by BPA, to take action to maintain system reliability during emergencies or for planned maintenance purposes.

15. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 15 Section 11 – Emergency Planning and Operation  Section overview: – Establishes Transmission Provider responsibility for planning, coordinating, and implementing emergency operation schemes. Examples: Under-frequency and under-voltage Load Shedding. – Requires customer participation in: Development and implementation of Load Shedding programs; Installation of Load Shedding relays; and Participation in system restoration planning.  Section 11 impacts on customers: – Requires customer participation and coordination with BPA in development of load shedding programs.

16. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 16 Section 12 – Information and Metering Requirements  Section overview: – References “Technical Requirements for Interconnection to the BPA Transmission Grid,” and “BPA Metering Application Guide.” – Establishes the type of metering required for receipt of transmission service. Example – revenue quality metering requirements, interchange metering, generation integration metering, communication equipment.  Section 12 impacts on customers: – The documents identify the type of metering required and associated communication equipment. – Current NT Customers already meet the applicable metering and communication requirements. – Customer provides, at its expense, either land-line with wireline protection or cellular phone service required for BPA’s revenue metering system (dial-up once per day to download meter data).

17. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 17 Section 14 - Communications  Section overview: – The “Technical Requirements for Interconnection to the BPA Transmission Grid” document, section 10, describes the communications requirements. – Provides for data communications via SCADA, RMS, and telemetering. – BPA determines communication requirements as part of its facility study for new or revised interconnection (generation or load).  Section 14 impacts on customers: – Depending upon the type of facilities or generation, the customer may be required to fund and maintain certain forms of communication in order to exchange information with BPA. For example: a leased telephone line for telemetering.

18. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 18 Section 13 – Metering Costs  Section overview: – Establishes general Transmission Provider (BPA) responsibility for new meter installation costs associated with transmission service transmission contract points of delivery. – For metering at existing facilities at effective date of NT Service Agreement: BPA responsible for metering costs, except: –Metering installation at convenience points of delivery; –Metering installation needed due to customer change in Balancing Authority Area (BAA). – For metering of new facilities established after the effective date of NT Service Agreement: BPA responsible for metering costs, except: –Generation integration; –AGC interchange points; –Convenience points of delivery.  Section 13 impacts on customers: – Provides the metering cost allocation at existing and new facilities.

19. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 19 Modifying the NOA  The NOA is currently part of BPA’s Tariff as Attachment G.  Modification to the NOA would require a Tariff change, requiring FERC approval.  Any NOA modifications would be reviewed by BPA and the Network Operating Committee (NOC).  If it is determined that a NOA modification is needed, BPA and the NOC could explore several avenues: – Modification to the existing NOA as Attachment G, and retain as part of BPA’s Tariff. – Removal of NOA from Tariff and separate execution of NOA with individual customers. Could include customer specific provisions, if necessary. Replace Attachment G with a general list of provisions that would be included in individually executed NOAs.

20. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N ADDENDUM

21. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 21 Reference Documents  Technical Requirements for Interconnection to the BPA Transmission Grid  BPA Metering Application Guide

22. B O N N E V I L L E P O W E R A D M I N I S T R A T I O N 22 Next Steps  Tasks for Committee: – Review NOA and identify areas of potential modification/clarification. Form a subgroup to address task? – Comment on draft Charter, developing the framework for the NOC. Form a subgroup to address task? – Other tasks?  Identify next NOC Meeting dates/times.